Financing

Few people can buy a home for cash. According to the National Association of REALTORS® (NAR), nearly nine out of 10 buyers finance their purchase, which means that virtually all buyers — especially first-time purchasers — required a loan.

The real issue with real estate financing is not getting a loan. Instead, the idea is to get the loan that’s right for you — the mortgage with the lowest cost and best terms.

We suggest that buyers start the mortgage process well before bidding on a home. We have local lenders that we work with often and we recommend. By meeting with lenders and looking at loan options, you will find which programs best meet your needs and how much you can afford.

We also recommend pre approvals for another reason: Purchase forms often require buyers to apply for financing within a given time period, in many cases, seven to 10 days. By meeting with loan officers in advance and identifying mortgage programs, it won’t be necessary to quickly find a lender, check credit, and rush into a financing decision that may not be the best option.

What is it?

“Pre-approval” means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a pre approval letter, which shows your borrowing power. You can visit as many lenders as you like and get several pre-approvals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports.

Although not a final loan commitment, the pre approval letter can be shown to listing brokers when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.

How do you get pre-approval?

Real estate financing is available from numerous sources, including lenders that can be found online and local mortgage companies. Based on our experience, we suggest lenders we have already worked with and who have a history of offering competitive programs and delivering promised rates and terms.

The loan officer will carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meet your needs. For instance, a first-time buyer may qualify for state-backed mortgage programs with little money down and low interest rates, while a repeat purchaser (someone who has bought a home before) with more equity (money invested in the home) might want to get a 15-year loan and the lower overall interest costs it represents. Typically, first-time buyers opt for the traditional 30-year loan, with either a floating interest rate or a fixed rate of interest over the life of the loan.

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About United Realty Group

Our professional staff is passionate about our clients’ goals, and aim to treat each client as if they were our only one. Together, your next real estate experience will not only be enjoyable but also produce great results! With over 2,000 real estate agents and over one billion in transactions for 2018, we are confident that we can match you with the perfect real estate professional. Please feel free to give us a call at (561) 469-8706, or send an email at info@unitedrealtygroupwellington.com anytime and we will contact you as soon as possible.